We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Hot trucking sector reined in by diesel prices, Russian invasion of Ukraine

Hot trucking sector reined in by diesel prices, Russian invasion of Ukraine

Freight haulers still enjoy market leverage, but advantage shrank in January, FTR says.

FTR index Screen Shot 2022-03-14 at 4.17.37 PM.png
March 14, 2022
Supply Chain Quarterly Staff
No Comments

Business conditions for trucking fleets were knocked down a few pegs in January from their historic highs by rising diesel prices, but the sector could face even greater challenges in the future as the Russian invasion of Ukraine drags on, a transportation analyst firm said today.

Trucking companies offset the effects of greater fuel costs by charging higher freight rates, but they faced a second challenge when freight volumes faltered in January, becoming a significantly weaker positive factor than they had been in December, Bloomington, Indiana-based FTR said.

As a bottom line, FTR’s Trucking Conditions Index (TCI) remains positive, but the downside risks have increased greatly, and experts now expect a record surge in fuel costs to hit trucking conditions in the near term in the wake of Russia’s military aggression.

“The war in Ukraine has introduced a high level of uncertainty into the dynamics of truck freight,” Avery Vise, FTR’s vice president of trucking, said in a release. “Sharply higher fuel costs for carriers are a given, but we do not yet know whether sharply higher gasoline prices on top of strong pre-existing consumer inflation and big swings in the stock market will lead to a drop in consumer spending.”

According to Vise, the unprecedented surge in diesel prices will likely cause many small trucking firms to go out of business, raising the question of whether those drivers will stay in the industry.

“Many will fail, but whether that outcome strengthens or weakens today’s rate leverage for carriers depends greatly on whether failing carriers’ drivers quit the industry or return to driving positions for larger carriers,” Vise said. “We generally would presume the latter, which could relieve some rate pressure, but the labor market has changed too much during the pandemic to make that a sure bet.”

By the numbers, FTR’s index for January fell to 11.46 from its December heights of 14.45. The index tracks changes in five conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel price, and financing. Combined into a single score, the number represents good, optimistic conditions when positive and bad, pessimistic conditions when negative.

Trucking
KEYWORDS FTR Transportation Intelligence
  • Related Articles

    Trucking market slumped under weight of diesel prices in March

    FTR: industrial sector continues hot pandemic rebound, fueled by stimulus, vaccines

    Ukraine invasion, inflation, and lockdowns take toll on freight market

Recent Articles by Supply Chain Quarterly Staff

FedEx and Aurora expand autonomous trucking pilot

Report: Chaotic peak shipping season ahead

Florida 3PL Fox Logistics acquires Boxton freight quoting platform

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing